An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:
A) Cost accounting system.
B) Managerial accounting system.
C) Responsibility accounting system.
D) Financial accounting system.
E) Activity-based accounting system.

Question

Quizplus · Accepted Answer

A responsibility accounting system is designed to provide information to evaluate the performance of a department's manager by focusing on the manager's responsibilities and the costs and revenues associated with those responsibilities. Cost accounting, managerial accounting, financial accounting, and activity-based accounting systems may provide useful information, but they are not specifically designed for evaluating a manager's performance within a department.

An Accounting System That Provides Information That Management Can Use